this influenced by existing institutional arrangements and 

 pricing patterns? 



(3) /nferregional competition: Will the Northeast continue to hold 

 its share of U.S. production. 



Answers to such questions could provide information for farmers 

 and policy makers alike. 



Objectives 



The study was designed to facilitate investigation of problems in 

 all three of the areas mentioned above. However, attention in this 

 report has been focused upon problems relating to intraregional com- 

 petition. The primary objectives are: 



(1) To estimate the supplies of milk and competitive products 

 (i.e., other livestock and feeds) that could profitably be produced bv 

 Northeast dairy farmers in 1965 at varying milk prices. 



(2) To estimate the price and quantity of fluid and manufacturing 

 milk eligible under supply and demand equilibrium. 



(a) Assuming competitive conditions throughout the Northeast 

 region. 



(b) Assuming current institutional restrictions to the (free) 

 flow of milk throughout the region. 



The data required to meet these objectives are being used in both 

 farm level and interregional studies. ^ Responsibility for conducting and 

 reporting of farm level investigations has been left to the individual 

 States. This bulletin is primarily concerned with the descriptive and 

 methological phases of the Northeast Dairy Adjustment Study. It des- 

 cribes the region, the methodology, and research techniques and pre- 

 sents the regional data in terms of milk supply functions. Some analysis 

 of data is made as well as a critique of the research procedures. 



Description of the Northeast Dairy Region 



Characteristics of the Northeast Dairy Region 



The eleven Northeastern States included in this region are: Maine, 

 New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, 

 New York, New Jersey, Pennsylvania, Delaware, and Maryland. The 

 large urban population in this area provides an extensive market for 

 both fluid milk and manufactured dairy products for Northeast dairy- 

 men. 



Dairy farming is the largest agricultural enterprise in the North- 

 east. Dairying exceeds all other agricultural enterprises in number of 



1 See Appendix B for a listing of other publications which contrilmted to this 

 study or were developed in conjunction with this regional effort. 



